The Dirty Secret about Insurance Quotes

The Dirty Secret about Insurance Quotes

Published Monday, October 30, 2017

by Diane Hipp

Aren’t we all trying to save some money? Especially on something we may or may not use?! So, the painful process of getting an insurance quote seems like a necessary step to 1: make sure your current agent isn’t ripping you off and 2: see if you can shave a few dollars from your cost. After all, insurance is insurance. Right?

Let’s put it in the context of buying a car. A car is a car is a car, right? We all know there are Cadillacs and there are Chevettes. It’s not all about the price…it’s about features, design, and performance. You can buy a Kia Rio for just over $14,000 or you can buy a Lexus LX 570 for about $77,000. Fact is, there are Cadillacs and there are Chevettes in the insurance world. And, as in cars, not everyone will need or want a Cadillac. There’s nothing wrong with buying a Chevette, as long as you know that’s what you have. So when you go insurance shopping for that quote, it’s smart to look at more than just the price.

There are insurance agents out there who sell strictly on price. They love to quote and promise they can save you 15 percent or more. And sure, they’ll likely match your limits and your deductibles (but maybe not!) But that’s only part of the insurance contract. The policy and endorsements are what determine what is covered and what isn’t. So when you think you’re comparing two policies by looking strictly at the limits and deductibles, you’ve only done a partial job. Furthermore, is the quoted policy even adequate for your needs? Did the agent ask you any questions about your risk tolerance, the details of your home, your biggest concerns should a disaster strike?

We know that the average consumer has a distrust of insurance agents and the insurance buying process. And why? Because the average consumer doesn’t understand insurance. Yes, it’s complicated. But we believe that the more educated you are, the better. And once you’ve learned some basics, you’ll be a better consumer of insurance and have a healthy skepticism of someone trying to save you 15 percent or more.